Baosteel Group, China's second-biggest steel mill by output, has started production at its two auto parts plants, the company said on its website.
The total investment, worth 450 million yuan ($67.7 million), suggested the steel mill is trying to gain a larger presence in the downstream sector.
Its listed arm, Baoshan Iron & Steel or Baosteel (600019.SS: Quote), is the country's biggest auto sheet producer and supplies almost half of auto sheets to domestic automakers.
Baosteel will also build a lab to research and develop new steel products to make cars lighter with top Chinese automaker SAIC Motor Corp (600104.SS: Quote). [ID:nTOE68J03S] ($1=6.644 Yuan)
